China to Ramp-Up Corn Processing to Bring Down Stockpile
China plans to boost its corn processing capacity from the current 50 million tons to 70 million tons per year by the end of 2018 in order to use up its record-high corn stockpile.
Toward this end, Tong Yi, the general manager of COFCO Biochemical, a listed subsidiary of state-owned grain trader, COFCO, said that the company planned to increase its processing capacity from the current six million tons to 10 million tons by 2020.
After 10 years under a stockpiling program, China now has an unprecedented corn stockpile totaling 250 million tons – or almost a year’s consumption, prompting Beijing to encourage the country’s farmers to switch away from corn production to soybeans.
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